As an employer, you cannot prohibit distributions from a SEP-IRA.
Also, you cannot make your contributions on the condition that any part of them
must be kept in the account after you have made your contributions to the
employee's accounts.

Distributions are subject to IRA rules. Generally, you or your
employee must begin to receive distributions from a SEP-IRA by April 1 of the
first year after the calendar year in which you or your employee reaches age 701/2. However, under the Worker, Retiree, and Employer Recovery
Act of 2008, required minimum distributions (RMDs) for 2009 are waived for IRAs,
including SEP-IRAs. As a result, if you reach age 701/2
in 2009 your first RMD, normally due by April 1, 2010 is waived. You are still
required to take your RMD for 2010 on or before December 31, 2010. For more
information about IRA rules, including the tax treatment of distributions,
rollovers, required distributions, and income tax withholding, see Publication
590.